Top 5 transactions leading ASEAN’s M&A trend

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Mergers-and-acquisitions

The World Bank has long underscored the economic importance of Southeast Asia, a top global growth engine, because of its burgeoning middle classes and related quickened clip of consumption. Its just the kind of landscape where large deal making continuously thrives.

The high-potential growth markets of Asia and their strongly performing consumer classes portend well for the future of greater mergers and acquisitions (M&A) in the region, with rising demand and wealth being the main drivers of transactions.

Kroll Advisory Solutions, a global corporate consultancy firm, has noted that cross-border deal transactions in high-growth Asia have blossomed from 97 transactions worth $15 billion in 2009 to 194 transactions worth $51 billion in 2012.

In ASEAN, Singapore has played witness to the highest volume of M&A action over the past fiscal year, largely in part because of its investor-friendly tax regime, stability and favourable regulatory environment. Following Singapore, investors are being drawn to Thailand’s open economy, as well as strong economic growth in Malaysia, the Philippines and Indonesia.

According to Kroll, Japan, accounting for the highest transaction volume in ASEAN, has entered 30 M&A deals over the past year — the greatest amount of which were in Thailand, Malaysia and Vietnam, while $12.5 billion was committed to special economic zones in Myanmar.

Below is a list of some of the major deals that Investvine has tracked in ASEAN over the past year.

Thai tycoon purchase of F&N ($13.8 billion) 

Singapore-based a property-to-drinks conglomerate Fraser & Neave (F&N) sold off a $13.8-billion stake to Thai billionaire Charoen Srivadhanabakdi, who became the new chairman, beating out Indonesian tycoon Stephen Riady for the top chair. Charoen Sirivadhanabhakdi, owner of Thai Beverage, is Thailand’s third richest businessman with a net worth of $6.2 billion.

CP Group purchase of HSBC’s Ping An Insurance stake ($9.4 billion)

Charoen Pokphand (CP) Group acquired a 15.57 per cent stake of HSBC’s holdings of China’s Ping An Insurance Group worth $9.4 billion in a purchase last December. CP Group, Thailand’s largest agri-firm, is chaired by country’s richest man, Dhanin Chearavanont.

DBS awaits Indonesia’s Danamon Bank deal ($7.1 billion)

Singapore’s DBS, Southeast Asia’s largest bank by assets, as of mid-June was stuck in limbo over a $7.1 billion deal for a 40 per cent stake of Indonesia’s Danamon Bank, to be purchased from Temasek Holdings, the city-state’s investment arm. Despite the bank’s size, the acquisition would mark its first major foray into Indonesia, ASEAN’s largest economy.

Heineken enters Myanmar through F&N stake ($6.5 billion) 

Dutch brewer Heineken purchased Singapore-based conglomerate F&N’s interest in Myanmar’s Asia Pacific Breweries for $6.5 billion in May. The Myanmar Investment Commission then gave the green light for Heineken to sell its beer through its newly acquired subsidiary, making it the first foreign beer company to be approved after the country’s new investment laws came into place.

Mitsubishi in bid for Thailand’s Bank of Ayudhya ($5.1 billion)

In early July (earlier March post), Japan’s Mitsubishi UFG Financial Group launched a $5.1 billion bid for the majority stake of Thailand’s Bank of Ayudhya in what will be the largest bank acquisition ever made in Asia by a Japanese bank. Mitsubishi, Japan’s largest bank by assets, said it has already secured a deal from General Electric, currently the Bank of Ayudhya’s largest shareholder.

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Reading Time: 3 minutes

Reading Time: 3 minutes

Mergers-and-acquisitions

The World Bank has long underscored the economic importance of Southeast Asia, a top global growth engine, because of its burgeoning middle classes and related quickened clip of consumption. Its just the kind of landscape where large deal making continuously thrives.

The high-potential growth markets of Asia and their strongly performing consumer classes portend well for the future of greater mergers and acquisitions (M&A) in the region, with rising demand and wealth being the main drivers of transactions.

Kroll Advisory Solutions, a global corporate consultancy firm, has noted that cross-border deal transactions in high-growth Asia have blossomed from 97 transactions worth $15 billion in 2009 to 194 transactions worth $51 billion in 2012.

In ASEAN, Singapore has played witness to the highest volume of M&A action over the past fiscal year, largely in part because of its investor-friendly tax regime, stability and favourable regulatory environment. Following Singapore, investors are being drawn to Thailand’s open economy, as well as strong economic growth in Malaysia, the Philippines and Indonesia.

According to Kroll, Japan, accounting for the highest transaction volume in ASEAN, has entered 30 M&A deals over the past year — the greatest amount of which were in Thailand, Malaysia and Vietnam, while $12.5 billion was committed to special economic zones in Myanmar.

Below is a list of some of the major deals that Investvine has tracked in ASEAN over the past year.

Thai tycoon purchase of F&N ($13.8 billion) 

Singapore-based a property-to-drinks conglomerate Fraser & Neave (F&N) sold off a $13.8-billion stake to Thai billionaire Charoen Srivadhanabakdi, who became the new chairman, beating out Indonesian tycoon Stephen Riady for the top chair. Charoen Sirivadhanabhakdi, owner of Thai Beverage, is Thailand’s third richest businessman with a net worth of $6.2 billion.

CP Group purchase of HSBC’s Ping An Insurance stake ($9.4 billion)

Charoen Pokphand (CP) Group acquired a 15.57 per cent stake of HSBC’s holdings of China’s Ping An Insurance Group worth $9.4 billion in a purchase last December. CP Group, Thailand’s largest agri-firm, is chaired by country’s richest man, Dhanin Chearavanont.

DBS awaits Indonesia’s Danamon Bank deal ($7.1 billion)

Singapore’s DBS, Southeast Asia’s largest bank by assets, as of mid-June was stuck in limbo over a $7.1 billion deal for a 40 per cent stake of Indonesia’s Danamon Bank, to be purchased from Temasek Holdings, the city-state’s investment arm. Despite the bank’s size, the acquisition would mark its first major foray into Indonesia, ASEAN’s largest economy.

Heineken enters Myanmar through F&N stake ($6.5 billion) 

Dutch brewer Heineken purchased Singapore-based conglomerate F&N’s interest in Myanmar’s Asia Pacific Breweries for $6.5 billion in May. The Myanmar Investment Commission then gave the green light for Heineken to sell its beer through its newly acquired subsidiary, making it the first foreign beer company to be approved after the country’s new investment laws came into place.

Mitsubishi in bid for Thailand’s Bank of Ayudhya ($5.1 billion)

In early July (earlier March post), Japan’s Mitsubishi UFG Financial Group launched a $5.1 billion bid for the majority stake of Thailand’s Bank of Ayudhya in what will be the largest bank acquisition ever made in Asia by a Japanese bank. Mitsubishi, Japan’s largest bank by assets, said it has already secured a deal from General Electric, currently the Bank of Ayudhya’s largest shareholder.

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